BUSI 1600 Lecture Notes - Lecture 8: Cash Flow Statement, Asteroid Family, Cash Flow
29 Mar 2017
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Document Summary
Key to any business it the time, people, and capital it needs: aka 3t"s. Treasure: time is arguably the most valuable. Professional help: lawyers, accountants, what their role is and how to find them. Mentors: benefits and issues, their role and how to find them. Boards: give advice/information and counsel, legitimacy, preferential access to resources, two main kinds of boards. Capital needs can be placed in two categories: start-up capital. Typically opening inventory of product, equipment/furniture insurance, legal, office supplies. Everything that gets you to the first day you open the business: operating capital. The ongoing inventory, wages, rent, usually described in the cash flow statement: so, start-up capital + operating capital = total capital required. Operating capitol or cash flow: a cash flow (cf) statement has two main components: Sources of cash (cash inflows) cash from operations + other sources.
